# Directional Risk Strategy Guide ### 📋 Overview Directional Risk Strategy allows you to adjust lot sizes and enable/disable orders based on trade direction (BUY vs SELL). This is useful when you have a market bias or want to trade only one direction. **Key Concept:** Instead of equal lot sizes for BUY and SELL, you can risk more on BUYs (bullish bias) or more on SELLs (bearish bias), or trade only one direction. *** ### ⚙️ Settings Explained #### **1. DirectionalRiskPreset** ``` DirectionalRiskPreset = PRESET_DISABLED | PRESET_BUY_AGGRESSIVE | PRESET_BUY_VERY_AGGRESSIVE | PRESET_BUY_ONLY | PRESET_SELL_AGGRESSIVE | PRESET_SELL_VERY_AGGRESSIVE | PRESET_SELL_ONLY | PRESET_BALANCED | PRESET_CUSTOM ``` *** ### 🎯 Preset Configurations #### **PRESET\_DISABLED** (Default) ``` Buy: 100% risk (normal) Sell: 100% risk (normal) ``` * No directional bias * Standard risk management applies * **Use when:** No market opinion, trade both directions equally *** #### **PRESET\_BUY\_AGGRESSIVE** ``` Buy: 150% risk (1.5x multiplier) Sell: 100% risk (normal) ``` **Example:** * Base risk: 1% per trade * BUY signal: EA risks 1.5% * SELL signal: EA risks 1% **Use when:** * Bullish market trend * You expect more profit from BUY trades * Want larger positions on BUYs **Real Example:** ``` Signal: EURUSD BUY, SL 50 pips Balance: $10,000 Base Risk: 1% = $100 Normal lot: 0.20 lot With PRESET_BUY_AGGRESSIVE: 0.30 lot (50% larger) ``` *** #### **PRESET\_BUY\_VERY\_AGGRESSIVE** ``` Buy: 200% risk (2x multiplier) Sell: 100% risk (normal) ``` **Example:** * Base risk: 1% * BUY trades: 2% risk (double) * SELL trades: 1% risk (normal) **Use when:** * Very strong bullish conviction * Most signals are expected to be profitable BUYs * ⚠️ Higher risk - use carefully! *** #### **PRESET\_BUY\_ONLY** ``` Buy: 100% risk (normal) Sell: DISABLED (orders blocked) ``` **What happens:** * BUY signals: Opens normally * SELL signals: Completely ignored/skipped * EA logs: "Sell orders are disabled by directional risk preset" **Use when:** * Only want to trade long positions * Strong bullish bias * Bearish signals historically unprofitable **Example Scenario:** ``` Signal 1: XAUUSD BUY → ✅ Opens order Signal 2: EURUSD SELL → ⚠️ Skipped Signal 3: GBPUSD BUY → ✅ Opens order ``` *** #### **PRESET\_SELL\_AGGRESSIVE** ``` Buy: 100% risk (normal) Sell: 150% risk (1.5x multiplier) ``` **Use when:** * Bearish market trend * Expect better performance from SELL trades * Want larger short positions *** #### **PRESET\_SELL\_VERY\_AGGRESSIVE** ``` Buy: 100% risk (normal) Sell: 200% risk (2x multiplier) ``` **Use when:** * Very strong bearish conviction * Most profitable signals expected to be SELLs *** #### **PRESET\_SELL\_ONLY** ``` Buy: DISABLED (orders blocked) Sell: 100% risk (normal) ``` **What happens:** * BUY signals: Completely ignored * SELL signals: Opens normally **Use when:** * Only want short positions * Strong bearish bias * Long signals historically unprofitable *** #### **PRESET\_BALANCED** ``` Buy: 100% risk Sell: 100% risk ``` * Same as PRESET\_DISABLED * Explicit equal treatment * Use for clarity in configuration *** #### **PRESET\_CUSTOM** ``` Allows you to set your own multipliers ``` *** ### 🔧 Custom Multipliers (PRESET\_CUSTOM only) When `DirectionalRiskPreset = PRESET_CUSTOM`, you can set: #### **BuyMultiplier** ``` BuyMultiplier = 1.0 // 1.0 = normal, 1.5 = +50%, 2.0 = double, 0.5 = half ``` **Examples:** * `1.0` = Normal BUY risk * `1.3` = 30% more risk on BUYs * `0.7` = 30% less risk on BUYs * `2.5` = 2.5x risk on BUYs (very aggressive!) * `0` = Disable BUY orders #### **SellMultiplier** ``` SellMultiplier = 1.0 ``` Same logic as BuyMultiplier but for SELL orders. #### **BuyMaxLot** ``` BuyMaxLot = 0 // 0 = use global LotMax ``` * Set maximum lot size specifically for BUY orders * Overrides global `LotMax` for BUYs * `0` = uses global setting **Example:** ``` LotMax = 0.50 // Global max BuyMaxLot = 0.80 // BUY orders can go up to 0.80 SellMaxLot = 0.30 // SELL orders limited to 0.30 ``` #### **SellMaxLot** ``` SellMaxLot = 0 ``` Maximum lot size for SELL orders. *** ### 📊 Real-World Examples #### **Example 1: Bullish Gold Trader** **Scenario:** Trading XAUUSD, believe gold will go up long-term. **Configuration:** ``` DirectionalRiskPreset = PRESET_BUY_AGGRESSIVE MaxRiskPerTrade = 1% ``` **Results:** ``` Signal: XAUUSD BUY, SL 50 pips → Opens with 1.5% risk (0.30 lot if calculated) Signal: XAUUSD SELL, SL 50 pips → Opens with 1% risk (0.20 lot if calculated) ``` **Outcome:** More profit potential from BUY trades you believe in. *** #### **Example 2: Only Sell EURUSD** **Scenario:** ECB dovish, USD strong, only want short EUR. **Configuration:** ``` DirectionalRiskPreset = PRESET_SELL_ONLY ``` **Results:** ``` Signal: EURUSD SELL → ✅ Executes Signal: EURUSD BUY → ⚠️ Blocked (logged as "Buy orders disabled") Signal: EURUSD SELL → ✅ Executes ``` *** #### **Example 3: Custom Asymmetric Risk** **Scenario:** Want 2x risk on BUYs, 0.5x risk on SELLs. **Configuration:** ``` DirectionalRiskPreset = PRESET_CUSTOM BuyMultiplier = 2.0 SellMultiplier = 0.5 BuyMaxLot = 1.0 SellMaxLot = 0.20 ``` **Results:** ``` Base risk: 1% BUY signal: - Risk: 2% (doubled) - Max lot: 1.0 SELL signal: - Risk: 0.5% (halved) - Max lot: 0.20 ``` *** #### **Example 4: Moderate Directional Bias** **Scenario:** Slightly bullish but still want to trade both directions. **Configuration:** ``` DirectionalRiskPreset = PRESET_CUSTOM BuyMultiplier = 1.3 // 30% more on BUYs SellMultiplier = 0.8 // 20% less on SELLs ``` **Result:** Subtle bias without extreme positions. *** #### **Example 5: Testing One Direction** **Scenario:** Want to backtest BUY-only strategy. **Configuration:** ``` DirectionalRiskPreset = PRESET_BUY_ONLY ``` **Benefit:** * Clean backtest of long-only strategy * No need to manually filter signals * Can compare vs SELL\_ONLY and BALANCED *** ### 💡 Strategy Ideas #### **1. Trend Following** During **uptrend:** ``` PRESET_BUY_AGGRESSIVE or PRESET_BUY_VERY_AGGRESSIVE ``` During **downtrend:** ``` PRESET_SELL_AGGRESSIVE or PRESET_SELL_VERY_AGGRESSIVE ``` *** #### **2. Carry Trade** For currency pairs where you earn swap on longs: ``` PRESET_BUY_ONLY or BuyMultiplier = 1.5, SellMultiplier = 0.5 ``` *** #### **3. Index Trading** Stock indices tend to go up long-term: ``` PRESET_BUY_AGGRESSIVE ``` Short-term trading during crashes: ``` PRESET_SELL_ONLY ``` *** #### **4. Commodity Bias** **Gold (bullish long-term):** ``` PRESET_BUY_AGGRESSIVE ``` **Oil (volatile, short opportunities):** ``` PRESET_BALANCED or PRESET_SELL_AGGRESSIVE ``` *** #### **5. News-Based** **Before positive news (ECB rate cut expected):** ``` PRESET_SELL_ONLY on EURUSD ``` **After news (if trend reverses):** ``` Switch to PRESET_BUY_ONLY ``` *** ### ⚠️ Important Warnings #### **❌ Don't Use Without Reason** Bad: ``` DirectionalRiskPreset = PRESET_BUY_ONLY Reason: "I just like BUYs" ``` Good: ``` DirectionalRiskPreset = PRESET_BUY_ONLY Reason: "Strong uptrend on 4H/Daily, fundamentals bullish" ``` *** #### **❌ Don't Forget to Switch** * Market conditions change! * Uptrend → Downtrend: Change from BUY\_AGGRESSIVE to SELL\_AGGRESSIVE * Set calendar reminders to review settings weekly *** #### **❌ Multipliers > 2.0 Are Dangerous** ``` BuyMultiplier = 3.0 // 3x risk = VERY risky! ``` * Can blow account quickly * Only use > 2.0 if you have **very strong** conviction * Prefer 1.0-1.5 range for safety *** #### **❌ Testing Required** * Always backtest new directional settings * Run on demo for 2-4 weeks * Verify performance before live *** ### 🎯 Best Practices #### ✅ **1. Start with PRESET\_DISABLED** * Get comfortable with standard trading first * Add directional bias only after consistent results #### ✅ **2. Use Moderate Multipliers** ``` Good: 1.3 - 1.5 Risky: 2.0 - 2.5 Dangerous: > 3.0 ``` #### ✅ **3. Align with Higher Timeframes** * Daily/Weekly uptrend → BUY\_AGGRESSIVE * Daily/Weekly downtrend → SELL\_AGGRESSIVE #### ✅ **4. Combine with Filters** ``` DirectionalRiskPreset = PRESET_BUY_AGGRESSIVE + ListSymbol = "XAUUSD" // Only on Gold ``` #### ✅ **5. Document Your Bias** Keep notes: ``` Date: 2024-10-28 Setting: PRESET_BUY_AGGRESSIVE Reason: Fed dovish, expect USD weakness Review Date: 2024-11-15 ``` *** ### 🔍 How EA Logs Directional Decisions When you enable directional risk, EA will log: ``` ========== DIRECTIONAL RISK CONFIGURATION ========== Preset: PRESET_BUY_AGGRESSIVE Buy Orders: ENABLED (Multiplier: 1.5x) Sell Orders: ENABLED (Multiplier: 1x) ===================================================== ``` When order is blocked: ``` Buy orders are disabled by directional risk preset ``` When multiplier is applied: ``` Base risk: 1.0% Direction: BUY Applied multiplier: 1.5x Final risk: 1.5% Calculated lot: 0.30 ``` *** ### 📊 Performance Comparison #### **Test Results** (Example - Your results may vary) **Symbol:** XAUUSD **Period:** 3 months **Signals:** 100 total (50 BUY, 50 SELL) | Preset | Profit | Drawdown | Win Rate | | --------------- | ------ | -------- | ----------------- | | DISABLED | +15% | -8% | 55% | | BUY\_AGGRESSIVE | +22% | -12% | 58% BUY, 52% SELL | | BUY\_ONLY | +18% | -10% | 58% | | SELL\_ONLY | +8% | -6% | 52% | **Conclusion:** BUY\_AGGRESSIVE was most profitable but with higher drawdown. *** ### 💼 When to Use Each Preset | Market Condition | Recommended Preset | | -------------------- | ------------------------------------------ | | Strong uptrend | BUY\_AGGRESSIVE or BUY\_VERY\_AGGRESSIVE | | Strong downtrend | SELL\_AGGRESSIVE or SELL\_VERY\_AGGRESSIVE | | Sideways/Ranging | BALANCED or DISABLED | | Bullish fundamentals | BUY\_AGGRESSIVE | | Bearish fundamentals | SELL\_AGGRESSIVE | | Testing strategy | BUY\_ONLY or SELL\_ONLY | | No clear bias | DISABLED | *** ### 🚀 Quick Start Guide #### **Step 1:** Analyze Market * Check trend on Daily/Weekly * Review fundamentals * Identify bias (bullish/bearish/neutral) #### **Step 2:** Choose Preset ``` Strong bias → AGGRESSIVE or VERY_AGGRESSIVE Moderate bias → CUSTOM (1.3-1.5 multiplier) No bias → DISABLED Testing → _ONLY presets ``` #### **Step 3:** Monitor & Adjust * Review results weekly * Adjust if market changes * Document reasons for changes *** ### 📞 Support **Common Questions:** **Q: Can I change preset during live trading?** A: Yes, but EA restart required. Close positions first for clean state. **Q: What if I set BuyMultiplier = 0?** A: Same as BUY\_ONLY preset - BUY orders disabled. **Q: Does this affect pending orders?** A: Yes, all order types (market, limit, stop) affected equally. **Q: Can I use different settings per symbol?** A: Not directly. Use separate EA instances or file config feature. *** **Remember:** Directional bias should be based on analysis, not gut feeling! 📈📉 --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://copier-docs.redfox-capital.com/config/directional-risk-strategy-guide.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.